The Cost of Covid Zero Keeps Rising
Bloomberg Businessweek|May 02, 2022
China's economy hasn't been in this bad a shape since the start of the pandemic
Tom Hancock, Allen Wan
The Cost of Covid Zero Keeps Rising

Virus outbreaks and a property slump are forcing Xi Jinping to put his revamp of China's economy on hold-and he faces mounting pressure to reverse last year's policies.

The omicron variant of the coronavirus slipped through China's border controls and is causing the largest outbreaks since Wuhan in 2020. About a quarter of China's population lives in cities that are now under some form of lockdown. Most of Shanghai's 25 million residents have been confined to their homes for more than a month. High-frequency indicators, such as city-to-city truck flows, suggest China's economy is contracting, and residents in multiple cities are struggling to find food and even dying from lack of medicines.

The economic outlook ranges from bad to very bad. In the most optimistic scenarios, the pace of new outbreaks slows as cities institute early and short lockdowns. In worse-case scenarios, China could face multiple Shanghais each month over the second and third quarters, which would raise the risk of a recession-something the country hasn't seen in the modern era.

With roadblocks across the country to prevent the spread of infections, activity at Chinese ports has plummeted, further straining global supply chains. Chinese financial and currency markets have sold off, and demand for imports of oil and other commodities is plunging.

The human suffering is raising doubts about the Chinese Communist Party's governing capacity. "There are a lot of unsatisfying decisions from the party," says Ada Yuan, a finance worker in Shanghai. "This is a big lesson for all of us after the country enjoyed a safe, stable environment without Covid-19."

Esta historia es de la edición May 02, 2022 de Bloomberg Businessweek.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición May 02, 2022 de Bloomberg Businessweek.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BLOOMBERG BUSINESSWEEKVer todo
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 minutos  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 minutos  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 minutos  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 minutos  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ minutos  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ minutos  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 minutos  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 minutos  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 minutos  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 minutos  |
March 20 - 27, 2023